Here are a few of the highlights of the changes in 2018.
Good News - Cost of Living Adjustments for Retirees
Retirees will finally get a cost-of-living adjustment (COLA) of two percent. This marks the largest COLA increase in the past six years and results in an average monthly increase of $27 per person. For 2018, the average Social Security check will be an estimated $1404 per month and the maximum Social Security check at full retirement age is $2,788. If that doesn’t sound like a lot, you can dramatically increase that number by waiting until age 70 to collect Social Security benefits.
Bad News – Higher Medicare Premiums
It should be no surprise that Medicare premiums are on the rise. For many recipients, this increase will more than eat up the Social Security COLA. Most beneficiaries of Medicare will shell out around $134 per month for Part B in 2018. That’s up $25 per month from 2017 and just two dollars below the average COLA for Social Security.